Dow craters 740 points below 30K, S&P sinks 3% and Nasdaq 4%
Investors pummeled U.S. stocks which are now at the lowest levels since 2020. The selling was complicated by worsening housing data, spiking mortgage rates and a no-confidence vote in the Federal Reserve after Wednesday’s 0.75% basis point rate hike. In commodities, oil rose 2% to $117.58 per barrel.
Defensive stocks including Dow members Walmart, P&G, J&J and Merck bucked the selling with modest gains.
Dow sinks by triple digits
Dow Jones Averages.
The Dow Jones Industrial Average fell as much as 900 points before easing slightly with leading decliners Nike, American Express and Chevron, while Walmart and Procter & Gamble held up.
Elon Musk talks to Twitter employees
Elon Musk, in his all hands meeting with Twitter, employees addressed a few top priorities, per reports…
Elon Musk is not concerned with being CEO of the company
He wants to hit 1 billion users
There needs to be a “rationalization” of headcount
Advertising is “very important” for the company
Housing headwinds mount
Housing starts and permits, signs of future growth, fell sharply in May signaling a sharper downturn facing homebuilders in the coming months.
Starts: -14.4% to 1.549M
Permits: -7% to 1.695M
Stocks tumble post Fed rally
U.S. stocks fell across the board as the post Fed rate hike rally faded and investors returned their attention to recession fears. New data on housing starts and permits showed a sharp pullback signaling a potentially steeper slowdown for homebuilders. In commodities, oil slipped to the $112 level.
Futures at a glance
Meanwhile, oil prices are lower, with West Texas Intermediate crude futures trading at $114 a barrel while Brent crude is trading at around $117 per barrel.
Stock futures plunge following post-Fed decision rally
Bitcoin continues downward trend
Bitcoin traded above $21,000 after falling in the overnight hours to a low of $20,111. Bitcoin enters Thursday on a nine-day losing streak, dropping more than 30% during that streak. The cryptocurrency is off more than 30% for the month and down more than 53% year-to-date. Ether traded around $1,100 and Dogecoin was at 5 cents.
Gas price slides
The price of a gallon of regular gasoline slipped slightly Thursday morning to $5.009, according to AAA. The price on Wednesday was $5.014. Gas hit an historic milestone over the weekend reaching $5 a gallon. Diesel rose to a record at $5.786 up from $5.78.